Synopsis: Entrepreneurship:

Consequently, BPM can contribute to one of the most important challenges of our modern economies and societies,

which is to sustain wealth by means of new business models. In featuring the views of global thought leaders,

We would like to express our gratitude for having had the opportunity to host the 2nd European BPM Round table in Liechtenstein

They all share the spirit that it is important to emphasize the strong contribution BPM can make to the economy and society,

the conversion of emerging insights, opportunities, and creative designs into new products, services, processes, or entire new business models.

However, unlike most transactional processes such as purchasing, sales, or payroll, the transformational process of innovation has been underexplored by the business process management (BPM) community.

Beyond support for internal idea management processes corporations have been short on improving the productivity and scale of their innovation value chain consisting of processes such as open innovation, design-led innovation,

Digital solutions have shifted the focus from corporate digital capital as materialized in compliance-driven IT systems to customer-centered mobile apps

In the current economic environment, competition emerges quickly in the form of technologysavvy disruptors able to provide superior value propositions based on light asset models.

Consequently, the BPM body of knowledge is need in desperate to be complemented by a more opportunity-driven, proactive approach to process design.

such an opportunity-driven approach answers questions such as In which of our processes do Google glasses create substantial gains?

or location-based services lead to new revenue streams? The coexistence of demands for cost and revenue resilience, i e.,

, the need to simultaneously address process issues and to capitalize on new digital process design opportunities,

is called Ambidextrous BPM. Ambidextrous BPM demands two different types of capabilities, i e.,, the continuation of the exploitative strength of traditional BPM needs to be combined with the explorative potential of a designintensive approach sensing external opportunities and converting these quickly into improved processes.

Adding BPM to innovation and innovation to BPM will ultimately lead to a new class of (process-aware) information systems,

which can be labeled (process) innovation systems. After understanding modeling, analyzing, and proposing reference models for most of the transactional processes, the speed, disruptive potential,

and opportunities of the digital age now require making transformational processes the focus of our investigations.

17 Charles Møller Thinking Tri-laterally About Business Processes, Services and Business models: An Innovation Perspective...

59 Peter Trkman and Monika Klun The Role of Enterprise Systems in Process Innovation...75 Bernd Schenk Process Innovation with Disruptive Technology in Auto Insurance:

Using Digital Opportunities to Drive Organizational Innovation...129 Jan Recker Enabling Process Innovation via Deviance Mining and Predictive Monitoring...

On the one hand, we identify opportunities of BPM as a driver of innovation that institutionalizes digital technologies in business processes.

On the other hand, we also recognize opportunities to, in turn, innovate BPM. Overall, we identify both opportunities and challenges of BPM when it comes to innovation in the digital age.

Based on these insights we provide an outlook on the chapters of this book which may guide both the research

4 T. Schmiedel and J. vom Brocke environment. Such regions comprise North america, Europe, and Australia,

Considering the rapidly changing business environment and technological developments in recent years, the innovative capacity of BPM gains increasing importance.

as an opportunity that ultimately allows fostering the success of organizations. Over the last couple of decades, research

and services utilizing new technologies. Having recognized the relevance of innovation in general and with regard to BPM in particular,

Innovations that have a substantive influence on many or even all parts of the economy (e g. the Internet.

Internet providers for such services are omnipresent and Internet-togo use is growing as it becomes more and more affordable.

At the same time, it is obvious that the mere technological action opportunities will not result in value creating innovations right away.

and BPM plays a key role in leveraging the manifold opportunities. In the next section, we further examine the role of BPM in driving such innovations. 8 T. Schmiedel and J. vom Brocke 5 The New Role of BPM Considering BPM as a source of innovation

The primary focus of these processes lies in identifying innovations of products and services that generate additional business value.

for example, by engineers in a secured environment inside the company. In recent years, however, open innovation has proven beneficial in more and more cases (Chesborough et al.,

and services often makes use of open innovation platforms such as the one from the coffee brand Starbucks,

where customers suggest new recipes for drinks and food, among other ideas. The growing trend to involve customers in innovation processes seems to be fostered by the possibilities that the various IT-supported collaboration systems of the digital age offer.

Online platforms, social media, and mobile apps, for example, are used increasingly to technologically support collective efforts to develop new products and services,

also referred to as crowd sourcing (Leimeister, Huber, Bretschneider, & Krcmar, 2009. Thus, managing processes

including the redesign of process steps through integrating IT products such as smart phones and tablets or IT services such as mobile apps.

On the one hand, both internal and external requirements from involved stakeholders can lead to the redesign of business processes.

While stakeholder requirements have always been triggers for change and innovation, new technologies of the digital age represent a key source of numerous affordances for process innovations today.

The digital age offers manifold opportunities to innovate business processes. In order to do so, it will be important to first identify value-creating potentials (vom Brocke, Debortoli, et al.

Richard Welke presents Thinking Tri-laterally About Business Processes, Services and Business models: An Innovation Perspective.

He outlines the close connection of business models (as purpose of a service), services, and processes (as sequence of tasks in a service)

Bernd Schenk outlines The Role of Enterprise Systems in Process Innovation. He highlights how enterprise systems can function as enabler,

trigger, and enforcer in organizational innovations and illustrates this by the opportunities of cloud computing for the integration of enterprise systems in process innovations.

Jens Ohlsson, Peter Ha ndel, Shengnan Han, and Richard Welch report on Process Innovation with Disruptive Technology in Auto Insurance:

Using Digital Opportunities to Drive Organizational Innovation. He illustrates how digital capabilities enable organizations to innovate based on facts rather than fiction

Activation-supporting components for IT-based ideas competition. Journal of Management Information systems, 26 (1), 197 224.

Identifying patterns of competences through latent semantic analysis. Enterprise Information systems, 8, 1 31. Recker, J. 2015.

Using digital opportunities to drive organizational innovation. In J. vom Brocke & T. Schmiedel (Eds.

Digital enterprise transformation (pp. 207 230. Farnham: Gower. Schmiedel, T.,vom Brocke, J, . & Recker, J. 2013).

Communications of the Association for Information systems, 34 (1), 151 167. vom Brocke, J.,Petry, M,

sense-and-respond organizations or real-time enterprise (Hugos, 2004). Operations and supply chain management have focused predominantly on reactive planning of inventories,

Standard IT systems can support real-time enterprises but organizations do usually not have the transformative capacity to absorb

enterprises need an integrated model-based infrastructure. Many of the required process technologies and methods such as process mining and business analytics have been researched

The envisioned solutions build on breakthrough enterprise systems solutions, accompanied by radically new management and development approaches.

It is politically possible to redesign the framework conditions for doing business in Denmark in such a way that the investments in Denmark (FDI) increase, thus

in order to develop‘intelligent products'for customers and accelerate the time-to-market. Advanced manufacturing methods such as prototyping and ramp-up are applied to support

and delivery The virtual business Virtual business connects the best global competences in virtual networks in order to quickly and effectively exploit more business opportunities and pool its resources of business creation, innovation, distribution,

or MADE, presently consisting of 26 manufacturing companies, 5 universities and 2 technological services, and the confederation of Danish industries.

The fourth industrial revolution is enabled by the introduction of the Internet of things and Services into the manufacturing environment.

The envisioned solutions build on breakthrough enterprise systems solutions, accompanied by radically new management and development approaches.

Fig. 1 MADE platform for future Manufacturing business Process Innovation as an Enabler of Proactive Value Chains 21 In order for an enterprise to leverage the advanced business process technologies,

-and-respond organization or an adaptive enterprise model (Haeckel, 2013). ) For a large and complex organization to be able to react proactively

and possibly adapt in a systematic way to the unpredictable demands of rapid change, the organization needs to be designed

A proactive strategy could be to monitor the demand patterns for exceptional variation and to create strategies for containing the disturbances within the existing supply chain capacity (see Fig. 2). Many of the required process technologies

Modern standard IT systems support many of the real-time enterprise concepts, but organizations usually do not have the transformative capacity to leverage the new technologies.

Table 1 Smart process manufacturing business transformations (Smart Process Manufacturing Engineering Virtual Organization Steering committee, 2009) From To Results Investment in facilities Investment in knowledge-embedded

facilities Investment and management of facilities and knowledge are equally important Reactive Proactive Economic optimization is achieved by anticipation and decision,

and operations are controlled to mitigate the impact Compliance Performance Zero-incident EH&S is part of the performance culture Tactical Strategic Requirements become opportunities,

optimizing total enterprise operation Local Global Every decision must be made in the context of a globally competitive environment Business Process Innovation as an Enabler of Proactive Value Chains 23 Furthermore, for wider use,

The real-time enterprise concept has also been around for several years (Fingar & Bellini, 2004.

and performance in the enterprise and systems that take action to optimize performance Proprietary systems Interoperable systems Systems must communicate through standard protocols for information sharing,

The open factory as outlined below, is designed as a low risk prototype environment for experimenting with the new concepts

1) A discrete manufacturing case, aimed at containing the effects of demand variation in the supply chain;(

and a study and an experiment with design thinking as a methodology for process innovation are also being investigated,

including an approach where students are engaged as a resource into the ecosystem of an enterprise.

Handbook on enterprise architecture. Berlin: Springer. Retrieved from http://www. google. dk/books? id LTR93XIADTEC&PGIS 1 Butner, K. 2010.

The real-time enterprise: Competing on time with the revolutionary business S-Ex machine (p. 222. Meghan Kiffer Press.

Retrieved from http://www. amazon com/The-Real-time-Enterprise-Competing-Revolutionary/dp/0929652304 Grigori, D.,Casati, F.,Castellanos, M.,Dayal, U.,Sayal, M,

Adaptive enterprise: Creating and leading sense -and-respond organizations (Google ebook)( p. 295). Harvard Business Press.

Building the real-time enterprise: An executive briefing (p. 224. Wiley. Retrieved from http://www. amazon com/Building-Real-time-Enterprise-Executive-Briefing/dp/0471678295 Hugos, M. H. 2009.

Business agility: Sustainable prosperity in a relentlessly competitive world (1st ed.).Wiley. Retrieved from http://www. amazon com/Business-Agility-Sustainable-Relent lessly-Competitive-ebook/dp/B001vlxnii/ref sr sp-btf title 1 7?

Organizing the real-time enterprise. Wiley. Retrieved from http://www. amazon. co. uk/Event-Processing-Business-Organizing-Enterprise-ebook/dp/B005yo4xuu Manufacturing Academy of Denmark.

2014). ) Retrieved February 1, 2014, from http://made. dk Møller, C. 2007). Process innovation laboratory: A new approach to business process innovation based on enterprise information systems.

Enterprise Information systems, 1 (1), 113 128. doi: 10.1080/17517570601092143.28 C. Møller Møller, C.,Chaudhry, S. S,

. & Jørgensen, B. 2008). Complex service design: A virtual enterprise architecture for logistics service. Information systems Frontiers, 10 (5), 503 518. doi:

10.1007/s10796-008-9106-3. Reinhart, G, . & Wu nsch, G. 2007). Economic application of virtual commissioning to mechatronic production systems.

Thinking tri-laterally about business processes, services and business models: An innovation perspective. In J. vom Brocke & T. Schmiedel (Eds.

Business Process Innovation as an Enabler of Proactive Value Chains 29 Thinking Tri-laterally About Business Processes, Services and Business models:

An Innovation Perspective Richard J. Welke Abstract We propose a new, integrated way of thinking about processes, services and business models.

The starting point of this paper is that getting things done is the set of services the organization employs.

These services are broken often, ineffective and/or misaligned with client/users needs. Any attempt to preemptively or reactively respond to market change

or internal transformations must invariably rely on some of these (broken) services while, at the same time creating new ones that,

in turn, make use of preexisting services as building blocks. It is argued that services (both internal-and external-facing) are two things:

a business process (the how of a service), and a mini-business in its own right (the why of the service).

a mini-business or business within a business and therefore is governed implicitly by a business model of the process/service owner, the CEO of that business.

It can be top-down by considering its business model. Or middle-out where a specific service for an internal or external client is examined for innovation potential.

BPM Driving Innovation in a Digital World, Management for Professionals, DOI 10.1007/978-3-319-14430-6 3 31 1 Services and Processes 1. 1

what is termed the service oriented enterprise (SOE; Khoshafian, 2007) and its variations, e g.,, value-stream architecture (Whittle & Myrick,

what it does), a collection of services of varying levels of scope and specificity (granularity).

Larger, so-called end-to-end services that fulfill customer needs are at one end of the granularity spectrum,

while rather narrow services such as an order-approval, database request, or an ERP-based shipping receipt event entry are at the other end.

Larger services of the end-to-end variety are composed typically of (and rely on) lower level (more granular) services.

Creating or adapting the larger, end-to-end services is, in SOE thinking, a matter of composing

or recomposing lower-level, available services. Don't have need what you to achieve the service offering in mind?

Then create a new one, modify or extend an existing one, or find an alternative service provider that has

Just like your customers'do. To take a classic example of this, consider Virgin Mobile (Sawhney, Wolcott, & Arroniz, 2011).

and data service to its targeted customers (primarily teens and young adults) consistent with its youthful, innovative brand.

tertiary and lower level services associated with payments, accounting, network connectivity, etc. Instead, it has chosen to wire together (compose) existing services from other service providers to achieve the bulk of its end-to-end service offering to its customers,

and to differentiate its offering by selecting a very few bespoke services that distinctively meet their clients needs,

thereby offering a unique value proposition to its mobile customers. In general, an organizational service architecture, with decreasing levels of granularity, might appear as shown in Fig. 1 below. 32 R. J. Welke 1. 2 Service Types The word service invariably evokes different notions

of what the term means and what it embraces. For some, such as those in information technology, it could mean a very welldefined interface definition that,

At the other end of the spectrum are designed services to respond to prospective users (clients) with vaguely defined/formalized needs that

(and service provider) and the discovered/offered/Fig. 1 A service-oriented enterprise view Thinking Tri-laterally About Business Processes, Services and Business...

33 mandated services making or inferring a claim to be able to solve such problems (Christensen, 1997).

Invariably, in any discussion of services, the idea of products'arises. Aproduct is something that entity A sells (transfers ownership) to entity B (the customer.

Services, on the other hand, aim to solve a problem (however vaguely or narrowly defined) on a one-off,

Services, on the other hand, are solutions to a current problem. They are sometimes (in the marketing literature) referred to as value co-creation (Vargo, Maglio, & Akaka, 2008.

1. 3 Service Typology There are many other ways to classify services including: the organizational area served by the services,

it's granularity, its mode or channel of delivery (e g. web-based, walk-in bricks-and-mortar, etc.),

is that services can be classified from either the client or provider perspective (with the preferred interface type defined by either).

is that services can be classified from either the client or provider perspective (with the interface type defined by either).

How, operationally, the provider chooses to respond to this need (services operation typology) is up to them.

shown in Fig. 3. Fig. 2 Generic service typology Thinking Tri-laterally About Business Processes, Services and Business...

profitability Materials storage Publicity management Benefits administration Demand planning Order dispatch & fulfillment Real estate management Branch operations Distribution/VAR management Order

relations Procurement Service fulfillment Compensation Invoicing Product data management Service provisioning Component fabrication IT service management Product design & development Shipping Corporate communications Knowledge management

Credit request/authorization Manufacturing Production scheduling Zero-based budgeting Thinking Tri-laterally About Business Processes, Services and Business...

say the MIT process framework) may not have well-defined customers, problems to be solved or solutions provided.

is a design decision that in Fig. 5 Service-process alignments Thinking Tri-laterally About Business Processes, Services and Business...

but that process can in turn draw upon internal and external services that are, in fact, simple services with standardized process executions.

namely business models. 3 Service Business models We begin here with the assertion that any service, whether it's consumed internally (by organization members

And, as such, it has implied an business model its raison d'e tre. And therefore invoking the by the service-process duality argument,

any business process or the service (s) it defines has implied an business model as well. Normally, and to the extent a business model is developed at all,

it is applied to the major value streams of an organization, i e.,, the principal, revenue-producing products and services.

However, there's no reason why this thinking can't be scaled to suit any service within the organization.

what is meant by a business model, how best to capture it, and whom its customers are.

There are many excellent frameworks and summaries on business models, including an older but integrative summary on business models provided by Al-Debei and Avison (2010).

A summary of the current the state of the art is provided in a whitepaper by Krcmar (2011. Of the numerous available process model frameworks, we adopt the work by Osterwalder, et al.

Osterwalder, Pigneur, and Tucci (2005), Osterwalder and Pigneur (2010)) on Business model Generation. These authors view a business model in terms of a canvas consisting of a set of interacting concepts shown in Fig. 6. Osterwalder

and Pigneur also provide a sub-canvas to enable practitioners to more fully elaborate their value proposition for the offered service,

called the Value Proposition Design or VPD (Osterwalder, et al. 2015)( Fig. 7): From a business model perspective, on the client side (outside-in perspective), each customer consuming the service has a problem-to-be solved (PTBS),

directly related to their job-to-be done (JTBD), that governs the service he/she elects. From a 40 R. J. Welke provider perspective, you're offering to the internal (to the organization)

and execution that successfully differentiates, in the minds of your internal or external customers, your service/process approach to their job-to-be done. 4 Business model Service Process Innovation The term innovation has many meanings and interpretations.

At one end of the spectrum it has been used to refer to a multiple times improvement in one

as seen either from Fig. 6 Business model concept associations Fig. 7 Value proposition customer-facing elaboration Thinking Tri-laterally About Business Processes, Services and Business...

What made many of these more compelling is that they represent services as platforms for other services (and thus additional innovation) and

as well as steps in between, are applicable to services and processes (and their associated business models). It depends on the perspective

(and tools) one moves towards the improvement end of the continuum of innovation. 4. 1 Innovating Business models

the process owner (the CEO of the service-process offering he/she is responsible for) is in competition with other value propositions that offer to (partially

or completely) address the customers'problemto-be solved. As a process owner, your first (and arguably primary) job is to define what the value proposition (s) are for the service-process you're internally (organizational customer)

3. How should you differentiate your offering so as to dominate those of others that offer a similar (perceived) value proposition to the customers you're seeking to attract or retain?

To do this they not only used some of their own internally managed services, but employed external services from others.

But to the travelling public they represented a one-stop shop. Alternatively, external providers now do many employee services that were provided once internally, by the organization.

Why? Because the internal service (e g.,, employee benefits, legal services, small item purchasing, employee travel) fail to adequately solve the employee or employers PTBS.

And, at some point, the gap grew large enough that rather than innovate the internal service they began using services that had already been innovated.

Even many previous core services of organizations, such as customer support, manufacturing and logistics have met similar fates.

The old adage, innovate or die applies with equal force to company's internal-and external-facing services

and underlying processes. 4. 2 Innovating with Service Composition While one can think about developing new service offerings

(and thus new processes to support these services), in reality many organizations use a combination of internally existing services,

along with externally available services to wire together new service offerings. What the end-customer sees is a new service offering from that organization.

Under the covers, there's a business process (typically supported by a BPMS or equivalent) that orchestrates these services,

while putting an organizational face on the end result. We previously noted Virgin Mobile as one that has done this masterfully.

Travel services, such as Priceline or Kayak. Or, financial information services such Thinking Tri-laterally About Business Processes

Services and Business...43 as Yodlee (who, in turn, sell their composition services to yet other financial organizations such as Fidelity on a white label basis). The basic pattern for this looks like (Fig. 8): 4. 3 Process Innovation

and Improvement The line between improvement and innovation blurs when focusing primarily on the process itself.

For sure, one can sometimes dramatically change process characteristics such as resources consumed, availability of the service, cost,

and Conclusions 5. 1 Business model Service Process Connection This paper argues for a tripartite view of business model-service-process thinking and innovation.

business model (bottom up), or business model! service! process (top-down), or starting with the service (middle out) depends upon

it is argued that any business process presents itself to its consumer as a business service that attempts to solve the customers'problem.

The organization has an evolving collection of such services (and underlying processes), with a presumed clientele drawn from either internal or external customers.

Regardless of demand origin (internal or external) there are competitors to the offered service. For example, the organization could provide its own payroll service,

but there are external competitors such as (in the US) ADP or Paycom (and, in large organizations,

If it's internal service competition, then the solution could be shared services (single internal provider).

If it's external competitors, then the issue becomes one of service differentiation, based upon characteristics that matter to the client.

Conversely, an organization, with an existing client base, may be interested in better differentiating its offerings to external customers

Either way, a business model of a service and its underlying process helps to sort out the intent and competitive positioning of any service being contemplated

Thinking Tri-laterally About Business Processes, Services and Business...45 5. 2 Interaction Effects Regardless of the directionality of the business model, service

and process taken, there are significant interactions that should be managed proactively. If one adopts an outside in (client first) perspective,

then it is argued that a business model of the proposed service offering should precede its detailed definition.

and then when so-defined, the service should be examined through the lens of its implied business model,

by making that business model explicit. In summary, a business model, service or business process, whether proposed or existing implies the existence of the other two.

Each provides a unique and equally important perspective on the offering that offers both comprehensive definition and critique,

and presents valuable insights into improvement and innovation opportunities that are afforded not by any single perspective. 5. 3 Conclusions This paper argues that business models,

the market of competitive offerings as well as the alignment of the process that delivers this value, through the service, to the market of customers for it.

Developing a unified framework of the business model concept. European Journal of Information systems, 19 (3), 359 376.

Services blueprint: Roadmap for execution. Boston, MA: Addison-Wesley. Khoshafian, S. 2007. Service oriented enterprises.

Boca raton, FL: Auerbach Publications. Krcmar, H. 2011. Business model research: State of the art and research agenda. Working paper of Technische Universitat Munchen, Chair for Information systems, Munich, Germany.

Malone, T. W.,Crowston, K, . & Herman, G. A. 2003). Organizing business knowledge: The MIT process handbook.

Business model generation: A handbook for visionaries, game changers, and challengers. John Wiley and Sons, 1st edition, Hoboken, NJ, USA.

Clarifying business models: Origins, present, and future of the concept. Communications of the Association for Information systems, 16 (1), 1 25.

Osterwalder, A.,Pigneur, Y.,Bernarda, G, . & Smith, A. 2015). Value proposition design: How to create products and services customers Want (1st ed.).Hoboken, NJ:

Wiley. Porter, M. E. 1998. Competitive advantage: Creating and sustaining superior performance. New york, NY: Free Press.

Meeting today's demand for innovation and agility (37 p.).Howdoupress. ISBN: 978-0-9835439-1-6. Whittle, R,

Enterprise business architecture: The formal link between strategy and results. Boca raton, FL: CRC Press. Thinking Tri-laterally About Business Processes, Services and Business...

47 Part II Driving Innovation Through Emerging Technologies Emerging Technologies in BPM Sandy Kemsley Abstract Business process management (BPM) has always been about productivity improvements.

and enterprise application integration (EAI) technologies, has always been about making businesses more efficient through automation.

greater transparency and insights into processes for both internal workers and external customers or business partners;

Not specific to BPM, these are transforming both consumer and enterprise software; these are described next to provide context for the following sections on BPM technologies. 2. 1 Mobile and Cloud Mobile and cloud,

but is also making inroads with remote and mobile enterprise workers. A healthcare worker working with patients in their homes can gather patient information on a mobile device

Enterprise mobile applications can improve efficiency and quality by capturing information at the point of collection,

Enterprise cloud applications, whether accessed via a mobile device or a traditional computer, allow anyone to participate from anywhere:

or business partners and customers from their own 52 S. Kemsley location. Since cloud applications typically do not require licensing and installation on the user's computer or mobile device,

and easy shared between users. 2. 2 Social Collaboration and Distributed Co-creation Enterprise social collaboration typically takes one of two forms:

distributed co-creation is the ultimate goal of enterprise social interaction: many people, in different locations and with a variety of skills, working together to create content or other work product.

This trend towards social collaboration as a feature of enterprise applications, rather than a separate tool, is accelerating the acceptance of collaboration within enterprises.

and collaboration occurs on demand rather than with predetermined participants. Note that social collaboration often relies on cloud infrastructure,

This raised user expectations for enterprise software: today's workers expect to be able to configure their own environment to suit their working style,

to collaborate with others at any point where they see fit, and to combine information from multiple internal and external sources

This can be overcome by a work environment where creative solutions are rewarded encouraging workers to offer their own ideas.

Identifying patterns of competences through latent semantic analysis. Enterprise Information systems, 8, 1 31. Ohlsson, J.,Ha ndel, P.,Han, S,

The role of enterprise systems in process innovation. In J. vom Brocke & T. Schmiedel (Eds.

Communications of the Association for Information systems, 34 (1), 151 167. vom Brocke, J.,Schmiedel, T.,Recker, J.,Trkman, P.,Mertens, W,

stakeholders need to be involved aptly in each of these activities. Potentials for achieving this lie in social media,

as an increasingly popular option in the digital world with which to involve the creativity and opinions of various stakeholders from both within and outside an organization.

Yet, it is still not well researched how companies can harness the various benefits for using social media to better involve both employees and customers in various phases of the business process life cycle.

or with customers) and provide examples for each type. 1 Introduction The business processes within the organization need to be modelled continually,

stakeholders need to be involved properly in each of these activities. In fact, principles of involvement (the need to integrate all stakeholder groups)

and continuity (continuous gains in efficiency and effectiveness) are among the 10 main principles of business process management (vom Brocke et al.,

'as an increasingly popular option in the digital world with which to involve the creativity and opinions of various stakeholders from both within and outside an organization (Kaplan & Haenlein, 2010;

and Borgatti (2014) define SM as information technologies that support interpersonal communication and collaboration using Internet-based platforms.

We here understand SM to be a service that facilitates networking among employees and stakeholders,

or also encompasses external stakeholders. Several authors have discussed already coupling strategies, benefits, and the requirements for successful implementation of SM (Bruno et al.,

like the demand of users for instant gratification, rich user experiences and rapid access to information.

Therefore we investigate the opportunities for BPM. SM, especially web-based, represent a communication tool of choice for many organizations the powerful

and cost-effective means of communication can foster digital innovation to reach previously unknown proportions (Hawn, 2009).

Social networking tools provide intensified collaboration among all stakeholders by providing a common network for interaction,

thus engaging one of the main advantages of SM making new acquaintances. The connection among rather unfamiliar individuals, termed weak ties by Granovetter (1983),

In turn they can function as incubators for collaboration (Jerome, 2013. Schmidt and Nurcan (2009) present the five principles of SM tools that drive the creation of content and context:

BPM should combine the views of several stakeholders in order to define, analyze and (re) create business processes (Dumas et al.,

Now, in the digital age, it is possible to include new stakeholders (e g. co-workers, business partners or consumers) in various phases of business processes through the utilization of SM.

Any form of communication and collaboration entails knowledge sharing and brings with it a series of potential risks (Trkman & Desouza, 2012).

With SM, employees and stakeholders are given much more freedom of choice to collaborate and connect.

but can prove too passive for the business environment. Consequently, the original purpose of SM integration into the process may be diluted

1) increase awareness of all stakeholders regarding Leveraging Social media for Process Innovation. A Conceptual Framework 63 process modeling and execution,(2) aggregate information, relevant for process modeling by different participants,

1) enabling continuous support during process execution by connecting all stakeholders (especially for immediate coordination in unexpected situations),(2) coordination support for distribution of execution processes among geographically-dispersed co-workers,

The monitoring phase can benefit from including SM for (1) receiving the (quantitatively measured) data and feedback from all stakeholders of the network and (2) sharing the process performance results with co-workers and customers/end-users alike.

) Involving more stakeholders in the modeling process can facilitate a more holistic perspective of the business process and its requirements.

which enable communication and collaboration among all employees by providing job-specific tools and applications on the intranet IBM-News, 2006).

or providing feedback on process models from external stakeholders Process execution phase Supporting employees in process execution Outsourcing process activities or providing users'support during execution Process

and feedback on process performance to employees Enabling real time visibility and feedback on process performance to customers or suppliers Process improvement phase Gathering and evaluating ideas for process improvement from employees Gathering

and evaluating ideas for process improvement from stakeholders Leveraging Social media for Process Innovation. A Conceptual Framework 65 4. 2 Modeling Phase for External Participants Organizations today strive to be customer-centric

and try to engage end-customers on one hand and suppliers on the other, as much as possible (Aguilar-Saven, 2004;

customers are included then rarely in the modeling itself. The lack of direct participation in the modeling process could be avoided by including SM.

Customers can even participate in the modeling of processes in which they are involved directly and sometimes attain a better or at least a different view on them,

SM provide a common platform for communication and collaboration. Even more, SM encompass tools to connect,

New, less hierarchical models of organizing have started to appear instead of traditional organizational forms, especially in highly dynamic environments 66 P. Trkman and M. Klun (Majchrzak, Jarvenpaa, & Hollingshead, 2007.

and the goal is not profit, but creating value. 4. 4 Execution Phase for External Participants In the execution phase,

either to facilitate communication or to distribute process execution onto customers. An example of the former is the airline company TAP,

which used Facebook to communicate with passengers during a natural disaster. When the Eyjafjallajo kull volcano erupted in May 2010 flights were cancelled at most European airports.

which they can present their innovation demands. In turn suppliers can access these sites and contribute innovation ideas.

Further examples of using SM in the recruitment process are connections and referrals through existing employees or other stakeholders. 4. 5 Monitoring Phase for Internal Participants In the monitoring phase,

Including SM in the monitoring process provides stakeholders throughout the organization with a chance to contribute

Organizations can use SM to collect information from a variety of stakeholders and present the findings via SM as well.

since the customers affect the process. SM can facilitate customer communities where customers can give immediate feedback

and see real-time information. Such openness of the organization seems risky and can be met with initial resistance by the management.

when Amazon introduced customers'comments and allowed critics to be visible online. As controversial as this seemed to some managers in the organization

2009). 4. 7 Improvement Phase for Internal Stakeholders All processes need to be improved continuously due to ever changing technological development, organizational changes and market demands.

Hassan, 2009). 4. 8 Improvement Phase for External Stakeholders Of course, also external stakeholders can contribute to optimizing processes.

By doing so, the company can bring the customers closer to the process. The external stakeholders are in this case not only limited to customers,

but extend to business partners as well, acting as internal customers (Weske, 2013). SM are targeted flexible to user needs,

often designed by users themselves and allow many types of content to evolve through a wide variety of collaborative processes (Von Krogh, 2012).

since customers and business partners can submit and assess improvement and innovation suggestions. Some companies enable customers to decide on change prioritization,

i e. voting on which suggestions are most important to them and should be implemented next. The open innovation site of the coffee shop chain Starbucks (My Starbucks Idea) is an example of such an open innovation approach;

its idea was to receive innovation suggestions from its customers (Starbucks, 2013. The latter provide the company with either product,

experience or involvement ideas that are rated by customers and those most endorsed are put into practice,

thus realizing exactly what the customers desired the most. 5 Conclusion SM can provide an excellent way of bridging the gap between the potential rigidness of well-structured

and optimized business processes and the often changing environment of a digital world. Incorporating SM into BPM provides flexibility by enabling communication and collaboration among a widespread net of employees and external stakeholders.

The challenge of making the BPM and SM marriage last is to identify the needs of BPM in a sufficiently structured way,

The types of SM use differ according to the stakeholders included and the business process life cycle phase.

The framework showcases how practitioners can use SM for internal and external stakeholder integration and provides a more structured approach to including SM in BPM.

not only lead to some marginal gains in a company's reputation but to real improvement in business processes as well as employee and stakeholder satisfaction.

International Journal of Production Economics, 90 (2), 129 149. Ante, S. E. 2009. Amazon: Turning consumer opinions into gold.

How to use social media to tap the collective genius of your customers and employees. Boston, MA:

The challenges and opportunities of social media. Business Horizons, 53 (1), 59 68. Kemsley, S. 2010.

Enterprise 2. 0 meets business process management. In J. vom Brocke & M. Rosemann (Eds.

Using and integrating modes of communication on campus. Information, Communication and Society, 10 (5), 671 693.

Adoption of social media for internal usage in a global enterprise. Paper presented at the Proceedings of the IEEE 27th International Conference on Advanced Information Networking and Applications (AINA), Barcelona, Spain.

A Conceptual Framework 73 The Role of Enterprise Systems in Process Innovation Bernd Schenk Abstract Process innovation redefining the way of doing business is of paramount importance for the sustainable success of organizations.

Innovation initiatives must relate to latest technological developments and opportunities these offer. The important role of enterprise systems in process innovation is neglected in many of these initiatives.

This chapter highlights the different roles enterprise systems can play in an innovation scenario and analyzes the interrelation of technological innovation and enterprise systems as process management platforms.

The ambiguity of opportunities offered by new technology is illustrated by the example of the cloud computing paradigm.

The chapter closes with the description of a solution path for an improved integration of enterprise systems in process innovation initiatives. 1 Introduction Many contributions have in the last years focused on the way in

which IT triggers or enables innovation and the accompanying change (cf. Markus, 2004; Turedi & Zhu, 2012.

The findings refer to data integration and business process support as the main benefits of enterprise systems

and analyze their potential to rethink and redesign business processes in process innovation activities. Process innovation,

and is distinguished usually from product innovation processes targeting new products for customers. B. Schenk(*)Institute of Information systems, University of Liechtenstein, Fu rst-Franz-Josef-Str. 21,9490 Vaduz, Liechtenstein e-mail:

i e. its enterprise system. An organization's enterprise system consists of many different applications that form the enterprise system of an organization in the sense of an individually designed solution integrating all business applications.

Different parts of an enterprise system are in different phases of their application lifecycle. Today's understanding of an enterprise system must consider this specific complexity.

Such a system type does not follow a clearly identifiable lifecycle, as prepackaged, homogeneous solutions did earlier (Davenport, 1998;

Shanks, Seddon, & Willcocks, 2003. With regard to innovation, new technologies and concepts are applied and integrated in enterprise systems continuously.

Today's enterprise systems are therefore permanently undergoing change and are moved from one stable state to the next by each modification of system parts.

In many cases, enterprise systems are considered to be a supporting tool for existing processes, providing integration and connectivity between different areas or departments of an organization.

Enterprise systems used to be custom-made developments for a single organization. Flexibility was achieved by changing program code.

This type of system was designed to support an existing process landscape. In the last decades prepackaged solutions became the most important mode of delivery for enterprise systems.

This has led to reduced flexibility in the adaptation to existing processes. At the same time new technologies were integrated in enterprise systems, causing tremendous change in functionality.

Therefore, every new software release is an opportunity for process innovation in an organization and a challenge to take maximum advantage of this opportunity. 2 Different Roles of Enterprise Systems in Process Innovation The following section describes the main roles that an enterprise system can have in a process innovation scenario.

These roles relate to the heterogeneous application landscape that makes up such a system. Changes in applications and integration of new technologies lead to opportunities for process innovation.

An innovation scenario besides other components consists of a trigger (operant resource) and an enabler (operand resource) for innovation (Nambisan

2013). ) This basic idea of different roles that IT can take in innovation processes is transferred and extended to the field of enterprise systems in process innovation in the following discussion.

Due to the specific characteristics of enterprise systems, three roles are identified. 76 B. Schenk 2. 1 Enabler Enterprise systems are the main component of an organization's IT landscape.

Due to the fact that they are customized highly off-the-shelf products or custom-made solutions, a lot of an organization's process knowledge is stored in

Process innovation activities always have to relate to an existing enterprise system in an organization

The diffusion of process innovation results is achieved by implementing the modified processes in an enterprise system.

This is considered to be the role of an enterprise system as an enabler for process innovation.

The trigger for process innovation is an event that is not connected to the enterprise system,

when discussing the role of an enterprise system as innovation enabler. Process innovation is initiated by activities external to the enterprise system

and implemented by changing it. This scenario relates to changes in the enterprise system (e g. new software releases

and adding mobile computing components) triggering the process innovation. Additional capabilities of the system allow a new way of doing business.

Process innovation is triggered within the enterprise system in this scenario. The new opportunities offered by the enterprise system lead to a redesign of processes

and creates an increased value contribution. An enterprise system represents a strategic resource creating sustainable competitive advantage due to a unique orchestration

and usage pattern of applications in this scenario. 2. 3 Enforcer While triggering an innovation is characterized by an increase in possibilities that a system is offering,

when modifications to an enterprise system force a process innovation due to changed system capabilities. An enterprise system consists of applications in different lifecycle phases.

Especially the replacement and disintegration of legacy systems forces process change: a new system is brought into use

Similar to the trigger role, the source of innovation lies in the enterprise system. In many cases organizations use this role to justify a business process redesign because of the implementation of a new enterprise system component.

They back up a process innovation initiative by the changed capabilities of a new system component to achieve increased acceptance of The Role of Enterprise Systems in Process Innovation 77 changing routines by the end user.

The role of an enforcer is one of the reasons why enterprise system implementation projects are considered to be highly complex,

causing tremendous change to an organization. 2. 4 Implications CIOS have to consider all three roles that an enterprise system can play in process innovation

when discussing changes to the system. The enterprise system is an innovation platform that triggers innovation

and enables the diffusion of process innovation in an organization at the same time. Considering only one of these roles is an oversimplification that is likely to cause the misunderstanding and failure of innovation initiatives.

as the embedment in enterprise systems (e g. mobile computing, in-memory computing, cloud computing) is a possible source of process innovation.

To achieve successful process innovation in a digital world, the interrelation between existing enterprise systems, new technologies,

A definition of the enterprise systems'role in an organization process innovation initiative can help to identify the system's importance as a strategic capability supporting a sustainable competitive advantage.

Enterprise systems do not only provide a platform for process implementation in an organization even more, they are the process management platform of an organization.

including the invocation of software services by an activity. This new design paradigm enables a detailed adaptation of the software

However, enterprise systems are only able to provide value contributions when optimized business processes are deployed.

Best-practice process templates provided by enterprise system vendors are tempting especially for SMES. Adopting standard processes can jeopardize competitive advantages based on company-specific process excellence.

and ambiguous opportunities an organization is confronted with when considering the implementation of a new technology.

It exemplarily highlights the potentials of cloud computing paradigm adoption based on company size as classification criterion. 78 B. Schenk Cloud computing has been a buzzword in the area of enterprise computing for some years now.

However, the expectations towards the implementation of a cloud computing model for an organization's enterprise system are ambiguous.

In many cases cloud computing is understood as a pure cost-cutting measure which enables an easier operation of enterprise systems.

Another field of application is the implementation of an enterprise systems extension, like customer relationship management software or the establishment of a common integration platform along a supply chain.

In these areas cloud computing is understood as a rapid deployment solution providing flexible scalability in run-time phase,

integration of in-memory computing and mobile device access to enterprise systems. Integration can be achieved much easier in the cloud by using the existing infrastructure of a cloud solution provider than by implementation in conventional on-premise solutions.

driven by the new opportunities offered by technology in other cases. It is therefore of paramount importance to take a closer look at the details of the cloud computing model and especially its service models.

when considering the opportunities and consequences of cloud computing for an enterprise, the service and deployment models as given in Fig. 1 should receive more attention.

In this example a special focus should be placed on the usage of cloud computing in the sector of highly integrated enterprise systems.

The challenges of process innovation in The Role of Enterprise Systems in Process Innovation 79 relation to cloud computing are illustrated by focusing on different service models,

and the way they are using enterprise systems for business operations. Cloud computing is considered to be a new delivery model enabling a focus on core competences while outsourcing the IT-related activities to professional cloud sourcing providers.

To exemplarily illustrate the range of opportunities service models do offer, the implications of different service model/delivery model combinations for large enterprises (LE) and small and medium sized enterprises (SME) have been outlined based on experiences from several implementation projects.

The indications illustrated in Fig. 2 are a first evaluation of opportunities for companies of different sizes.

The table shows how diversified the implications of cloud computing for an organization are. Coming back to our claim that the usage Fig. 1 NIST model of cloud computing (Mell & Grance,

A lack of knowledge and understanding of new paradigms like cloud computing and their applicability to enterprise systems might cause obstacles to process innovation in an organization.

Enterprise systems have shown a low frequency of change in the past. Companies try to keep the system in operation

as long as possible since the initial investment for a system is high and an implementation project is considered to be a risky endeavor.

and enterprise systems play a vital role for innovation in a digital world. We see that a continuous modification process,

as described above, nowadays characterizes enterprise systems. Their role must be understood completely and carefully considered

Continuing the evaluation of service model/delivery model combinations leads to a mapping of the different roles of an enterprise system in the clusters shown in Fig. 2

In some areas enterprise systems take a more passive role of an enabler for process innovation.

In some other areas the modified enterprise system is triggering or enforcing innovation due to modifications in functionality

A brief description of the role allocation is outlined in Fig. 3. The example showed the potential of enterprise systems for process innovation in connection with technological changes.

The enterprise system's importance as a process management platform must be considered to achieve an optimal value contribution from technology adoption initiatives.

Fig. 2 Opportunities of different service model/delivery model combinations with relation to company size The Role of Enterprise Systems in Process Innovation 81 4 Openness of Enterprise

Systems In the last years we have seen that a clear differentiation of an enterprise system's lifecycle in the build-time and run-time phase (or even more detailed in different phases of the implementation project (Shanks et al.

2003)) does not serve the purpose of analyzing an enterprise system's role in process innovation.

What Weick (1977) calls a chronically unfrozen system in management theory can be transferred to the area of enterprise systems as a new modus operandi.

when working in a stable environment. Enterprise systems are considered to be at the core of enterprise operations

and therefore follow the dynamics of organizational change. The tendency to become a chronically unfrozen system (Weick,

1977) is valid for enterprise systems, too. Fast changing environments, like value webs as a form of interorganizational cooperation, increase the frequency of change for both an organization and its systems,

and make permanent openness to change necessary. A main challenge when trying to bring together enterprise systems

and innovation initiatives is therefore to establish such openness for change and a Fig. 3 Potential roles of enterprise systems in process innovation while adopting the cloud computing paradigm 82 B. Schenk platform for innovation enablement in an organization.

A chronically unfrozen system comes with a lack of structure making employees feel uncomfortable as their routines can be subject to change anytime.

and take precautions against this to keep the enterprise on a high level of productivity permanently.

At the same time, the effects of this trend towards increased openness (as given in open organizations, open innovations, open systems) on enterprise systems must be analyzed.

Enterprise systems must be transformed to chronically unfrozen systems to serve a company's needs. This transformation process is supported by achievements such as new technologies (e g. in-memory computing enabling real-time-process monitoring

To transform an enterprise system into a process innovation platform, organizations must have a comprehensive understanding of new technologies

The requirements for enterprise systems have therefore been changing in the last years the aim is not to increase efficiency

enterprise systems are expected to be an important source of innovation as they inherit most of an organization's process knowledge.

SAP's latest design thinking and business process transformation initiatives) 5 Summary Enterprise systems research has become a mature area in the field of information systems in the last years.

Only in a few cases are the enterprise systems related to current topics like process innovation and challenges of a digital world in general.

This chapter should illustrate that enterprise systems must not be neglected when talking about innovation in organizations.

Furthermore, The Role of Enterprise Systems in Process Innovation 83 the potential touch points and different roles of these systems in an innovation process have been shown.

A necessary and important precondition is a thorough understanding of changes in the area of enterprise systems.

Putting the enterprise into the enterprise system. Harvard Business Review, 76 (4), 121 131. Lenart, A. 2011.

Cloud enterprise systems: A review of literature and its adoption. PACIS 2012 Proceedings. Paper 76.

and be sustained without fundamental changes in a company's structure, business model and business strategy. We further propose a capability layer model for understanding the insurer's process innovation behaviour.

which sense the surrounding environment, including means for positioning via e g.,, the GPS (that is, the Global Positioning System) or other satellite navigation systems;

and distributed to a large portion of the population a fact that opens up opportunities for developing a range of disruptive technologies.

) Connecting millions or even billions of smartphones into large scale sensing systems enable time or location-based services in environment monitoring, intelligent transportation systems, applications in health and support for the ageing populations,

Disruptive technologies have the great potential to transform life, business and the global economy. Process innovation is adopting a process view in managing business in combination with applying innovation into key processes.

Currently, the market penetration is low, with the Progressive Casualty Insurance company in the US as the market leader with around 1. 4 million customers in their program (Insurance Telematics, 2012.

The technology will help the insurers to increase their overall profits (Progressive, 2012. There are numerous benefits related to a UBI program for the insured car drivers.

They can also receive value-added services, such as teen-driver monitoring, emergency services, navigation and infotainment, stolen vehicle recovery, vehicle diagnostics and congestion forecast, allowing for driving in time slots

when it is crowded less and/or with reduced risk. In case of an accident, drivers can also use their profile of driving behaviour to prove safe driving behaviour to insurers.

the idea of using the UBI in an innovative business model was initiated. A legal entity was founded and formed outside of academia (Movelo AB,

MOVING VEHICLE LOGGER) that had the role of facilitating the business model innovation based on the new technology.

and innovate their business model so (1) money is earned by both parties, and (2) high-valued traffic information is collected taking Movelo closer to its vision

If P & C is a market leader in the Nordic countries with approximately 3. 6 million customers in Sweden.

and sales process by getting a new customer channel and improved customer relations through the new possibility of communicating to their customers via the smartphone;(

by identifying the dedicated customers; and (3) the insurance company also gains new possibilities to innovate their business model by cooperating with new key partners,

such as companies with customers who are car reliant, for example gas retailers. 3 The Case of the

If Safedrive Campaign In May 2011 a commercial contract was signed between If P & C and Movelo AB.

and mobile application that attracts car-drivers, especially new customers, based on the core-technology; Increase sales volumes;

, existing customers as well as potential customers. Fig. 2 Examples of the smartphone interface and feedback to car-drivers

The purpose of the commercial release was to implement the smartphone application in real driving scenarios with larger group customers/car drivers.

, creating salesvolumes and acquiring new customers. 3. 1 The Process Innovation: Customer Acquisition Process The application of the smartphone-based UBI telematics transformed the insurer

and implemented with the aims of taking maximum advantage of the new customer channel (the Smartphone) and its communication capabilities.

The insurer delayed the roll out of the new insurance product to mainstream customers. Process Innovation with Disruptive Technology in Auto Insurance 95

it failed to recruit the desired amount of new customers. Most of the users were already customers of If P & C. However,

the If Safedrive application created much attention among end users. During the first 48 h after the application was released on Appstore,

Or Insurer makes an outbound call to recruit new customer Consumer makes insurance request through Smartphone App New customers recruitments are made by word-of-mouth, e g. inviting friends, social communities, etc.

Price calculation Based on the static demographic data and historical statistics Based on the dynamic changes of driving behaviour (UBI) Customers get an accurate and personalized price.

and analysing customers'driving behaviour. The insurer did improve the knowledge of predicting driving risks.

For instance, they criticized that the insurance industry's hunger to chart customers in real-time may prove larger than Facebook and Google (Computersweden, 2013.

business model redesign and business strategy transformation. Within the stable insurance industry structure and business environment in Scandinavia, the insurance company has no imperative and immediate motivation to transform the business strategy

and redesign the business models for auto insurance. Therefore, the process innovation with disruptive technology such as insurance telematics can't be achieved

and sustained at this moment. The lessons learned have significant theoretical implications. In order to fully understand the implications,

business process design for the core technology implementation, product/services Process Innovation with Disruptive Technology in Auto Insurance 97 implementation, individual organization readiness for innovation implementation, towards business models and the outer

Business environment is conceptualized as the macro economic and market environment that a company operated within.

The management of an innovation goes through two phases: exploration phase and exploitation phase (Tidd & Bessant, 2009.

i e. business strategy, business model and organization, which are conceptualized in the CLM contributes to the failure.

, organization structure, business model and strategy is stressed in this phase. Therefore, the interactions with exploitation are frozen. We discovered that in the organization layer,

Since one or more of the stakeholders who were responsible or accountable for capabilities required for the innovation lacked the necessary motivation, competence or empowerment/mandate, due to a stable business environment and low risk tolerance,

it became clear that the layers of organization structure, business model and strategy were not ready for an exploitation of the innovated process.

In other words, the process innovation does not encounter all elements that may ensure its successful up-take and exploitation (Rosemann & vom Brocke, 2010.

The technology, based on many years scientific research, has created a novel way of offering auto insurance products to customers by analysing their driving behaviours.

Thus, the innovated process cannot be sustained in the current environment. Christensen (1997) pinpoints that a market leader with a low risk tolerance, who is acting in a stable business environment with a functional business model

usually avoids the adoption of innovation for fear of provoking the business environment. A possible solution to this dilemma could be to unbundle the business by separating an insurance telematics initiative to another division and brand (Osterwalder & Pigneur, 2010.

Due to the unique context and core subject of this case study, the generalization of the results may be limited.

or radically change the competitive environment. References Abrahamson, E. 1996. Management fashion. Academy of Management Review, 21 (1), 254 285.

Profiting from business model innovation: Evidence from pay-asyou-drive auto insurance. Research Policy, 42 (1), 101 116.

IEEE Communications Magazine, 48,140 150. Malcolm, G. 2000. The tipping point: How little things can make a big difference.

Business model generation: A handbook for visionaries, game changers, and challengers. Hoboken, NJ: Wiley. Progressive. 2012).

we now see the birth of data science as a new discipline driven by the torrents of data available in our increasingly digitalized world. 1 The demand for data scientists is rapidly increasing.

or be tagged using Radio-Frequency Identification (RFID), Near Field Communication (NFC), etc. Theinternet of Locations (Iol:

Different stakeholders should interpret event data in the same way. GL2: There should be structured a

For example, due to communication errors, some values may be less reliable than usual. Note that uncertainty is different from imprecision.

For example, in the Oracle RDBMS environment, redo logs comprise files in a proprietary format 116 W. M. P. van der Aalst

which has been investigated in the (web) services (Aalst, 2013c). ) In Aalst, Mooij, Stahl, and Wolf (2009) and Barros, Decker, Dumas,

2005) a technique is presented for correlating messages with the goal to visualize the execution of web services.

IEEE Transactions on Services Computing, 6 (4), 525 535. Aalst, W. van der (2014. Data scientist:

Proceedings of the I-ESA Conference (Enterprise Interoperability, Vol. 6, pp. 13 28. Berlin: Springer.

Formal methods for web services (Lecture Notes in Computer science, Vol. 5569, pp. 42 88. Berlin:

IEEE International Enterprise Computing Conference (EDOC 2011)( pp. 55 64. IEEE Computer Society WASHINGTON DC, USA.

Proceedings of the 3rd Central-European Workshop on Services and their Composition (ZEUS 2011), CEUR-WS. org, CEUR Workshop Proceedings (pp. 9 15.

YAWL and its support environment. Berlin: Springer. IEEE Task force on Process Mining. 2011). ) Process mining manifesto.

Web services navigator: Visualizing the execution of web services. IBM Systems Journal, 44 (4), 821 845.

Extracting Event Data from Databases to Unleash Process Mining 127 Reichert, M, . & Weber, B. 2012).

Using Digital Opportunities to Drive Organizational Innovation Jan Recker Abstract Process improvement and innovation are risky endeavors, like swimming in unknown waters.

A further subject will be how innovations can be converted from confidence-based to evidence-based models due to affordances of digital infrastructures such as large-scale enterprise software or social media.

and share a number of key takeaway lessons for how organizations can innovate on the basis of digital opportunities and principles of evidence-based BPM:

innovation is seen also as applicable to the development of new service offerings, new business models, new processes or new management J. Recker(*)Information systems School, Queensland University of Technology, 2

and just about every asset and element in an organizational system and that products and services represent just the tip of the innovation iceberg.

it was the business model that centered around this piece of technology, and the novel processes with which people could interact,

but it was the App store that created an innovative and novel business model that provided a separate ongoing value proposition and added income stream.

, new products combined with new process platforms create entire new business models. Focusing on any one type of innovation in itself

Colleagues would argue that process innovation was one of the waves that preceded the current enterprise-wide focus on holistically managed business processes.

and I will try to illustrate how organizations can innovate on the basis of digital opportunities,

can change existing businesses through the introduction of new business models (Chesbrough, 2010), products or services or can change internal procedures and culture to yield higher degrees of efficiency.

Clearly innovative information technology solutions drive organizational change (Markus & Robey, 1988. In fact, new products and services can be sufficiently successful to create entirely new markets (Berry, Shankar, Parish, Cadwallader, & Dotzel, 2006.

Conversely, a lack of successful transformation following technology innovation can lead to bankruptcy of established businesses (Lucas & Goh, 2009), more and fiercer competition for established businesses by later market entrants that copy

existing models, products or solutions, or, in the best case, a stagnant business. Approaches to innovation are great in number

2012), conducted through open innovation with customers or other stakeholders (Chesbrough, 2003), or through a focus on mergers and acquisitions to source innovative new products, services or business models.

On the other hand, there are numerous examples of case studies of failed innovation (Lucas & Goh, 2009) and attempts to examine the tensions between technology innovations and the institutionalized practices prior to that innovation (Tushman & Anderson, 1986).

Using Digital Opportunities to...131 3 Evidence-Based Management Innovations are essentially complex decision-making problems made under uncertain conditions.

Using Digital Opportunities to...133 innovation decisions are noted as above, complex problems under uncertainty and typically concern high risks of failure, potential lack of return on investment or even disruption or failure of entire business models (Lucas

& Goh, 2009. Clearly, evidence and fact-based decisions have their place in such endeavors. 4 Research-as-a-Service To develop evidence-based management capabilities in an organization, that is,

research can provide additional innovation support services: Novel conceptual perspectives: Research can offer new perspectives on an existing problem by proposing

and prototypes and to explore opportunities for which organizations often do not have the resource or time.

Using Digital Opportunities to...135 5 Digital Opportunities for Innovation and Evidence-Based Management Digital infrastructures play a major role in enabling the use of evidence-based management decisions in process innovation.

This is because they allow analysts and managers alike to readily and effectively access and gather objective data that can be used as facts in innovation decisions.

While some of these technologies, such as enterprise system software, have been around for decades, recent years have seen also a rapid uptake of modern digital infrastructures that transcend the business-private life boundary, such as social networking platforms,

These digital infrastructures provide ample opportunities for evidence-based management in process innovation. Some of their affordances include:

the opportunity to scale up the sheer quantity of available observations, facts et al. Traditionally, fact finding in support of decision-making in the context of BPM methodologies such as Six Sigma and others has always been hampered by sheer pragmatic concerns about the feasibility, resourcing and costing of data collection efforts.

In turn, the opportunity also serves as a warning sign: It is no longer acceptable not to peruse available data and evidence in making process-related decisions.

Using Digital Opportunities to...137 Positive deviance reverses this paradigm, and shifts process innovation thinking from fixing errors to rewarding

thus an opportunity to increase the performance of all other processes towards the level of the positive deviant process instead of fixing a negative deviant

when we account for differences in environmental conditions such as number of customers frequenting the supermarket every day (a bakery in Paris will always sell more bread rolls than a bakery in Vaduz,

the bandwidth of average sales performance by the number of customers is indicated by the two lines traversing the diagram at a 45angle.

000 bakeries are true positive deviants that sell significantly more given their number of customers.

Using Digital Opportunities to...139 Process personnel is a root cause of deviance, in that creative staff were finding new solutions for products, display and service,

so that customers can always get their hands on the products they desire. Anticipating demand in advance to allow for the delivery of products on time involves forecasting predictions about future demands based on past sales.

Typically, this essential process is carried out by experienced store managers, who use data from an information system, together with their detailed knowledge of local customers,

local events and all other factors that will influence sales. This process is a key responsibility for store managers

whilst low-volume items that sell irregularly (but not necessarily make less profit) are hard to predict for humans

Using Digital Opportunities to...141 this case the optimal solution to the replenishment process problem was indeed a little bit of both with Research-as-a-Service providing evidence required to understand what a little bit actually means. 7 Conclusions Evidence is key to making well-informed decisions.

research and mission control, is increasingly becoming both a demand and a requirement for the management of organizational resources, most notably the management and improvement of business processes.

and I reviewed digital opportunities for creating and using evidence in making decisions about processes.

Two examples were given as illustrations of how process innovation projects can benefit from the availability of evidence derived through digital opportunities.

In order to capitalize on these digital opportunities, data scientists are becoming an essential resource in developing a capability to identify,

Business model innovation: Opportunities and barriers. Long Range Planning, 43 (2 3), 354 363. Clinebell, S. K,

. & Clinebell, J. M. 2008). The tension in business education between academic rigor and real-world relevance:

Communications of the ACM, 54 (4), 86 96. Dreiling, A, . & Recker, J. 2013). Towards a theoretical framework for organizational innovation.

Tracing the progress of innovations borne on enterprise social network sites. Paper presented at the 34th International Conference on Information systems, Milan, Italy.

Technological discontinuities and organizational environments. Administrative Science Quarterly, 31 (3), 439 465. van der Aalst, W. M. P. 2011.

Communications of the Association for Information systems, 34 (7), 151 168. Evidence-Based Business Process Management:

Using Digital Opportunities to...143 Enabling Process Innovation via Deviance Mining and Predictive Monitoring Marlon Dumas and Fabrizio Maria Maggi Abstract A longstanding challenge in the field of business process management

and support environments that leave considerable freedom so that process workers can readily deviate from preestablished paths.

in order to provide guidance to stakeholders so that they can steer the process towards consistent and compliant outcomes and higher process performance.

but in any case its purpose is to enable the analyst to identify process improvement opportunities. Predictive monitoring on the other hand produces recommendations for process workers during the execution of a case.

and communicated across all relevant process stakeholders. 4 Predictive Monitoring The execution of business processes is generally subject to internal policies, norms, best practices, regulations, and laws.

because goods from different customers are aggregated often and dis-aggregated at different points in the process.

290 single models. 1 Introduction The usage of reference models offers many advantages for the development of individual enterprise models in practice as well as in science (Fettke & Loos, 2004;

On the basis of individual enterprise models, a reference model is developed through the identification of commonalities between the individual models and through the abstraction of particularities.

An increasing abstraction from specificities of individual enterprise models is one characteristic of this development process.

Thus, it is possible to use a deductively developed reference model together with individual reference models as a basis for a further inductive development of reference models. 3. Enterprise modelling has gained more importance in organizational practice.

more individual enterprise models, target models and reference models which can be used for inductive reference modelling are available.

1) variation of the modelling demand, e g. best practice, common practice or model reusability;(2) variation of the object, e g. companies with several locations/offices, parent/subsidiary companies of a horizontally organized enterprise, organization units with comparable function in different sectors;(

3) variation of the modelling level, e g. software reference model or (4) variation of the modelling purpose,

The research approach of this work stands in the tradition of German design science oriented research in the modelling of enterprise information systems (Frank, 2006:

In contrast, activities such as the creation of individual enterprise models or the abstraction of enterprise-specific features that would be expected for the inductive strategy are not listed at the top level of the life cycle models.

The analysis of these methods shows that the inductive strategy of reference modelling plays no prominent role.

On the contrary, some even noted that existing individual enterprise models and other knowledge sources should be identified

Nevertheless, besides the programmatic call to consider existing individual enterprise models, only few actual suggestions exist for the systematic derivation of reference models from these models.

if appropriate individual enterprise models are neither available nor identifiable prior to the reference model development.

Must the development of individual enterprise models for reference modelling be waived in this case? Or is it possible that reference model development benefits from the developments of individual enterprise models while, in a second step,

a reference model is derived in an inductive manner? Besides the mentioned methods, various authors (Gottschalk, van der Aalst,

& Mendling, 2011) or for the integration of enterprise models (Rahm & Bernstein, 2001a, 2001b).

These approaches provide very interesting concepts for the analysis of enterprise models but they have not been applied in reference modelling so far.

so that a reference model can be derived systematically from individual enterprise models. One cannot speak of an inductive development in a meaningful way

If the individual enterprise models contain similarities, these have to be represented in the reference model.

Therefore, the derived reference model should be more abstract than the individual enterprise models. Generativity:

In contrast to the first requirement, it should be possible to derive the individual enterprise models from the inductively generated reference model.

This ensures that the reference model is not too far away from the individual enterprise models that it represents.

A common part of enterprise models are natural languages, in which known phenomena such as homonymy, synonymy and linguistic fuzziness are typical.

Acquisition of Individual Process Models The goal of this step is to collect individual enterprise models that are used for the inductive development of reference models.

The class of enterprises for which the reference model should be developed has to be determined. For example, a class can be created by an explicit list of companies

Enterprise selection: In general, individual enterprise models are collected not for all but only for selected companies of the previously defined class.

The selection of suitable companies should take into account at least three aspects:(a) representativeness of the selected companies (b) accessibility to a company or individual enterprise models (c) effort to collect individual enterprise models.

In a concrete decision, conflicts between these aspects will occur. For example, the costs will rise

if additional enterprise models have to be collected. But this can be essential for reasons of representativeness.

Collecting individual enterprise models: Enterprise models of the selected enterprises have to be ascertained. The known methods for enterprise modelling can be used.

The inductive development of the reference model can be carried out at a lower cost, especially when individual enterprise models have already been created in the past

and can be reused. It is important to document the source (provenience) of the collected enterprise models

because important conclusions can often be drawn from this information (e g.,, What was the purpose of the original model?

Which changes took place? Are there some legal restrictions which have to be obeyed?).The result is a definition of classes of enterprises as well as individual enterprise models. 160 P. Loos et al.

Phase 3: Preprocessing of Individual Process Models The goals of the third step are an adjustment

and a harmonisation as well as a preprocessing of the individual enterprise models in order to derive an initial reference model.

If the modelling conventions could be enforced in the collection of individual enterprise models in the second step,

Otherwise, the individual enterprise models have to be transformed in this step according to the unified modelling conventions.

or a group of words that can be interchanged in an enterprise model without changing the intended purpose of the model.

supplier (a business partner who has obligations for goods and services). A synset and a modelsynset are conceptually similar,

But such terms are important within individual enterprise models. In addition, individual enterprise models often contain business-specific characteristics

which are covered not by general dictionaries. Nonetheless, digital dictionaries can be used as a first step for an automatic generation of modelsynsets,

The results are homogeneous individual enterprise models and modelsynsets. Phase 4: Exploitation of the Reference Model The goal of this step is the generation of a reference model out of homogeneous individual enterprise models.

The following sub-steps have to be processed: Clustering: In a clustering step the different individual models are grouped in a way such that models within one group are similar

Known similarity measures for enterprise models can also be applied (Dijkman et al. 2011). ) However, it has to be mentioned that known similarity measures are focussing on the similarity of enterprise models as a whole

and do not take into account the similarity of single model fragments. The identification of similarities between individual sub-models provides great potential for the derivation of reference models.

Individual enterprise models as Identification of Business Process Models in a Digital World 161 a whole exhibit significant differences,

In this step, individual enterprise models are interpreted as graphs. Within the various graphs, isomorphic sub-graphs have to be identified.

An abstraction parameter a and a configuration parameter ß are introduced to describe the extent to which characteristics of individual enterprise models are reflected by the reference model.

%only sub-graphs occurring in all individual enterprise models become part of the reference model. The configuration parameter ß determines the value at

For example, some sequences can occur in several different individual enterprise models, so these dependencies should be included in the reference model.

Evaluation with respect to individual enterprise models: It is necessary to examine how individual enterprise models can be derived from the reference model.

As a benchmark, the initial individual reference models or other models can be used. Evaluation based on an existing framework:

Literature provides several criteria for the assessment of reference models, e g. the framework by Frank (Frank, 2007), the guidelines for enterprise modelling (Becker, Rosemann,

& Schu tte, 1995) or ontological quality criteria (Fettke, 2006). The result is evaluated an reference model.

It is possible that further individual enterprise models are developed and should be integrated into the reference model during enhancement.

and how far aspects of the new individual enterprise models are covered by the reference model,

Besides the provision of general descriptions of enterprises, which is especially interesting from a theoretical point of view, practice profits,

e g. from reductions in modelling costs, modelling time and modelling risk, as reference models can represent proven solutions (Becker & Meise, 2011).

which support the analysis of individual enterprise models and the derivation of a reference model.

& Bergmann, 2007) on a scale between 0 and 1. The results show that it is possible to automatically derive a reference model from a given set of enterprise models.

Furthermore, typical similarities and differences of the enterprise models are explicated. Hence, the application scenario gives substantive support for the inductive development of reference modelling to become much more efficient and effective. 7 Conclusion

and Future Work Reference modelling offers several advantages for the practice of enterprise modelling (see also chapters by Becker (2015) and Malinova and Mendling (2015)).

Die Zukunft des Enterprise Engineering. Festschrift f€ur Erich Ortner zum 60. Geburtstag (pp. 37 49.

With companies being subject to increasing degrees of competition and a more dynamic market environment, it is crucial to implement organizational changes rapidly

large enterprises integrate vertically to manage all parts of the value chain in a unified way,

and networks of highly specialized firms collaborate to efficiently provide products and services. Often large parts of the work have become digital,

Hence, BPM projects are conducted in large, possibly interorganizational environments (Houy, Fettke, J. Becker(*)Department of Information systems, University of Muenster, Leonardo-Campus 3, 48149 Mu nster, Germany e-mail:

it is also true that by the very nature of a BPM project not each and every stakeholder can be a modeling expert.

Otherwise, there is a risk that readers misinterpret certain aspects of some models. 4 The Icebricks Approach The icebricks tool is a process modeling software prototype developed to support BPM consulting projects in the retail industry.

The icebricks modeling environment is structured in four layers (cf. Fig. 2). On the first layer, modelers design a framework,

With icebricks, a prototype has been developed that demonstrates the feasibility of this concept. Hence, future research can focus on extending icebricks with other 188 J. Becker features that might facilitate standardization and easy comprehension of process models.

In 2006 I e. international conference on services computing (SCC'06)( pp. 167 173. Chicago, IL.

Unified enterprise knowledge representation with conceptual models Capturing corporate language in naming conventions. In 30th international conference on information systems.

University of chicago Press. Malone, T. W. 2003. Organizing business knowledge: The MIT process handbook. Cambridge, MA:

of high-quality services to its beneficiaries. Digital innovations enabling optimal and integrated performance for the actors'value production become essential in such settings.

An increased connectivity for enhanced collaboration could be met by digital innovations that bring new values and opportunities for existing and new actor participation in the ecosystem see also chapter by Schmiedel and vom Brocke (2015.

Due to its relational capital, transport hubs do have a strong influence on behaviour in ecosystems focusing on transport processes.

and included several stakeholders involved in realizing the doorto-door process. The empirical data was derived from a series of workshops and interviews with the key stakeholders along the process steps, in conjunction with observations.

Among other things this project resulted in several process models that covered the entire door-to-door process

because they focus on the evolution of the firm capabilities and business models instead of on the relationship (Air) port Innovations as Ecosystem Innovations 195 between the firm and its external ecosystem (Iansiti & Levien,

since they provide services along the flow. Instead, it is the beneficiaries (such as e g. the passengers/patients) themselves who are responsible for arranging the process based on the opportunities (and constraints) and possible process variants of a particular flow.

However, in this chapter we argue that a shared understanding of the objectives around the flow,

and its variants, can facilitate an increased consensus among the involved stakeholders. Optimal and integrated performance within ecosystems does need

Allee (2000, p. 439) claims Value network analysis provides an opportunity to overcome the‘split'in business management practices where human interactions

MOBP captures both condition-creating processes for establishing a basis for the realization of value propositions aimed towards potential customers as well as realizing business transactions with particular end-customers.

Beneficiaries of such processes are end-customers utilizing the products being offered through value propositions from a main actor in the business network,

The value, often operationalized and described as products (goods and/or services), produced, delivered, utilized,

Multi-organizational business processes both cover actions performed for potential as well as particular end-customers. Actions performed for potential customers are oriented towards the establishment of conditions for efficient realization of customer assignments as well as embedded/integrated assignments.

Successful multi-organizational businesses rely on the ability to coordinate value creation processes based on assignments as coordination mechanisms, throughout the value chain using network capabilities.

Understanding these preparatory steps would enable the establishment of expectations on diverse organizations/actors involved in satisfying the needs of different stakeholders.

1. traveller satisfaction 2. profitable business (business revenue) and acting for the public good 3. environmentally friendly operations 4. state of the art collaboration management with involved stakeholders

In the design vision the necessity to understand regulations/norms as well as the role of ICT (digital services

Taking the own car to the airport requires information about possible parking opportunities. Some parking lots can be booked pre via the airport website.

Between security and boarding there are various opportunities for discretionary activities (such as shopping, dining, visiting a lounge, etc.).

These opportunities are managed by numerous organizations and contribute to the airport income. Balancing between actions to enable different types of income is a great challenge for airports,

which is why it has become important to offer attractive opportunities for passengers to spend valuable time at the airport.

At Stockholm-Arlanda different (public and private) operators are offered the possibility to provide services to passengers, all with equal conditions.

and energy efficient flows (as means for KPA#3). Each of the (digital) innovations initiated in the future Airport project had the goal to contribute to these values (see Fig. 4 below) founded on patterns of data streams as the common information environment.

The ambition with a management dashboard is to enable digital images providing status of the D2d process for key stakeholders with relevant data in real time for the purpose of increased punctuality and customer satisfaction.

which better describes the fluid manner of interaction between developers and users of information services.

and small third party developers design the latest traveller support services using commonly available data. There are a number of novel insights to be made.

Second, consumers of digital services (e g. the travellers) are also suppliers of feedback data, encompassing feedback on digital services, new ideas on digital services, the use of physical infrastructures and transport

services, their opinion of such services, and their travelling behaviour. Among other things, this facilitates (1) the improvement of digital services,(2) the design of new digital services,(3) the discovery of new ideas on

which data should be provided. Fig. 7 Example of a passenger dashboard channelized via different media 210 M. Lind

In the MONALISA project (www. monalisaproject. eu) information sharing environments are being set up to achieve safer, more efficient,

This requires that common information environments are being set up in which different actors, including the beneficiaries,

Suppliers and customers are defined not explicitly in this example; also, inputs and outputs are shown not. 3 Process Map Design and Its Impact In this section,

such as the Manage enterprise risks Make insurance offer Solvency Capital Requirement processes Make insurance policy Process bark file payments Collect insurance payment Optimize investment portfolio Manage HR Manage Finance Handle insurance claim

position and orientation. 3. 3 Impact of Process Map Design The design of a process map has a strong impact on how stakeholders cognitively capture the operations of a company.

For example, the processes shown in the core process category win customers and control sales are clearly a subset of the core process sales.

Facilitating cross-functional thinking will in return lead to increased employee communication and collaboration. Moreover, a process map is used as a foundation for the subsequent detailed modeling.

How general electric and others turned process into profit. New york, NY: Wiley. Hammer, M, . & Champy, J. 2009).

and BPM concepts, making them more prepared to deal with changing and uncertain business environments.

in highly unpredictable or turbulent environments has extensively been discussed by management researchers (Brews & Purohit, 2007;

According to Sanchez (1997), the traditional strategic management objective of choosing a single best plan of action is likely to be an unrealistic objective in an uncertain environment.

However, organizations often have difficulties in implementing strategic changes at the speed required by the market environment (Shimizu & Hitt, 2004.

and business processes in changing environments becomes a difficult task for organizations. Although we now live in a digital world,

most organizations cannot exploit the opportunities given by information technology to solve these issues see also chapter by Schmiedel and vom Brocke (2015).

as well as a prototype system that we have constructed and an application scenario that illustrates its usefulness. 2 Related Work The concept of line of sight (LOS)( Boswell,

Common practices to improve LOS rely on workshops, company-wide presentations, e-mail communication, and goal-based performance assessment (Boswell et al.,

But new technologies delivery opportunities for making strategies go digital, offering much more automation opportunities for making employees aware of their role in the company's strategy.

We define strategy awareness as an information system's capacity to influence users to work towards the strategic priorities of the organization.

1) the user application services;(2) a context acquisition and reasoning module; and (3) an adaptation mechanism.

The context is the information that comes from the environment and that defines the situation in which the application is being employed.

and provide services to the user in a way that is optimized to the current context of use. On the basis of these concepts, we design four main modules that compose an SA-BPM system's architecture:(

The adapters created in this way may communicate with the Context Provider through web services to acquire information from the context

and the strategy of the organization and also about specific recommendations about how that process instance should be executed to meet the expectations of the organization. 4 Prototype Implementation This section describes a prototype SA-BPM system constructed to show the feasibility of the architecture proposed.

The results-chain that is linked to this activity is illustrated in Fig. 6. The work product contributes to the implementation of the make use of external transport services action,

Make use of external transport services when this reduces the cost of delivery per product unity External carrier contracted Fig. 6 Results-chain linked to the work product external carrier contracted 242 C a. L. Oliveira et al. 5. 2 Finance

which may be less critical at the time. 6 Conclusions Companies in complex and uncertain environments need means to adapt their strategies and operations quickly in response to unexpected situations.

Strategic planning in unstable environments. Long Range Planning, 40 (1), 64 83. Brignall, S, . & Ballantine, J. 2003).

Strategic enterprise management systems: New directions for research. Management Accounting Research, 15,225 240. Buller, P. F,

Strategic planning in a turbulent environment: Evidence from the oil majors. Strategic Management Journal, 24 (6), 491 517.244 C a. L. Oliveira et al.

International Journal of Services Sciences, 1, 83 98. Sanchez, R. 1997. Preparing for an uncertain future:

For realizing the opportunities for both business process and compliance management, it becomes obvious that both have to work together and, in practice, Flexible Workflows and Compliance:

a flexible adaptation of ongoing workflows to new demands or changing contexts is challenging (see, e g.,

In our prototype Kitcom we decided to integrate the controls as early as possible, following a prudence principle for a detailed description of the identification

Therefore, in the following, we demonstrate the integration (as well as the definition of reference controls) by means of a prototypical implementation within the adaptive Wfms Aristaflow (see http://www. aristaflow. com). 4 Prototype Kitcom Integrating Controls

at Run-Time A prototype called Kitcom, originally presented at the Cebit 2013 and published by Kittel et al.

the prototype requires two parts: firstly, reference controls, including the definition of situations in the workflow instance (status of integration parameters) where an integration of a control process becomes necessary,

Figure 6 shows an overview of the architecture of our Kitcom prototype (light grey fields are the original components of Aristaflow,

the prototype has the general functionality for integrating control activities into workflows during execution, satisfying both the need for flexibility by ad hoc changes of processes-schemes and the compliance with policy rules through dynamic integration of required reference controls. 5 Discussion and Conclusion For many companies,

and efficiently adapting their business processes to changing demands from markets, customers'individual needs, requirements of business networks,

or changing laws. Current technological progress and the ongoing trends to analyze business data quasi in real-time will,

the prototype implementation also works for any custom Workflow Client implementation. Thus, Kitcom is seen as a promising next step in automating compliance, that is,

but also offers new opportunities for other domains to use Wfms that are dependent on flexibility and on achieving multiple goals, e g.,

Exploiting these opportunities provided by BPM in the long run can be expected to drive innovation further in our digital world.

Flexibility and compliance in workflow systems The Kitcom prototype. In Proceedings of the 25th international conference on advanced information systems engineering (CAISE'13)( pp. 154 160.

Enterprise SOA: Service-oriented architecture best practices. Upper Saddle River, NJ: Prentice hall. Ly, L.,Rinderle-Ma, S.,Knuplesch, D,

Economics of controls. In Proceedings of the international workshop on information systems for social innovation 2011 (ISSI 2011)( pp. 230 236.

and also by economic motives, like higher international competition, altered customer expectations, and work redundancies with high costs (Hammer & Champy, 2003).

In the 2000s, Champy (2002) responded to criticism of BPR by explaining how BPR can create value for all stakeholders.

and companies with their customers to achieve dramatic improvements in efficiency and create value for everyone involved (Champy, 2002, p. 3). For instance, in a business-to-business environment,

an organization consists of a web of interacting processes and people (like in a supply chain, a business network or for outsourcing).

BPMN, BPQL) to facilitate the integration of applications and communication between integrated organizations, and process-aware information systems (e g. a BPM suite) to allow business people to model,

Enterprise resource planning, Service-Oriented Architecture, Enterprise Architecture Integration and workflow management. According to the authors, a BPM system or suite can close a gap between the intentional process design and its implementation,

(or customers) have an account with one or more of the social media tools like Twitter,

in order to provide mutually beneficial value in a trusted and transparent business environment (Greenberg, 2009). As such, social CRM means truly listening to customers,

wherever they are, responding, anticipating and making the commitment to improve products and services. It is driven user

in order to turn fans and followers into customers and even advocates of a brand. Consequently, social CRM has a real impact on both existing and new business processes,

as illustrated below (Ang, 2011; Altimeter, 2010; Woodcock et al. 2011). ) Regarding existing business processes, feedback or complaints received by means of social media can give insightful input towards adjusting an organization's way of working (i e. business rules and operations.

Social media can also facilitate people's involvement from idea generation to the realization of new products and services,

/)This approach involves several opportunities for an organization, like more innovative insights from the external environment

and engaged community members who are more likely to buy the (new) product or service afterwards. 2. 4 Learnings Although the presented key domains are interpreted frequently as separate approaches,

As the opportunities for more efficiency and effectiveness change over time, we can see that, in practice,

RUP) and enterprise architecture (e g. Zachman. IBM's Rational Unified Process (RUP) is an iterative and incremental IT development framework with disciplines across project lifecycle phases.

and (9) environment. Business value is realized in four project lifecycle phases:(1) inception,(2) elaboration,(3) construction and (4) transition.

Zachman's enterprise architecture framework (1987) categorizes different artifacts of organizational data that are required for IT development, e g. design documents, specifications, and models.

The categorization is a two-dimensional matrix with six communication questions in the columns and five stakeholder perspectives in the rows, resulting in 36 categories. 264 A. Van Looy The six communication questions are:(

1) what (data),(2) how (function or process),(3) where (network),(4) who (people),(5) when (time),

1) contextual (scope/planner),(2) conceptual (business models/owner),(3) logical system models/designer),(4) physical (technology models/builder),

Digital innovations may result in a digital enterprise, which can be defined as any organization: whose IT plays a dominant role in the corporate strategy,

p. 1). In order to become a digital enterprise, SAP (2013) has designed a digital capability framework with digital transformation enablers and goals.

The four digital transformation goals that a digital enterprise must pursue are (1) customer centricity,(2) effective knowledge worker,(3) operational excellence,

and collaboration between departments, customers and suppliers instead of a vertical organogram with silos, etc. SAP, 2013). 3. 3 Learnings The first key domain in this section still takes a technical perspective on business processes by focusing on process modeling and deployment,

1) workshops between business and IT for gathering requirements regarding new processes or eliciting improvement opportunities,

(because digital innovations generally aim at increasing business performance by taking advantage of opportunities), as well as (3) the use of a process architecture or hierarchy of layered process models to help orient (new) employees or estimate the impact of risks and changes.

plays an essential role in digital innovations by maintaining communication and collaboration between process participants, customers and other external stakeholders,

MS PROJECT) or communication (e g. Skype. Also the ability to interpret and use the technical process output metrics may facilitate the mentioned strategic alignment,

opportunities and threats of certain business situations that require innovation). Besides these nontechnical values for digital innovations, the activities of a process competence center (called Center of Excellence) can be seen as more technical by methodologically supporting the previous process capabilities.

they are likely to miss out on a wider perspective on business opportunities to create innovation through IT.

Process management Strategic alignment of a process strategy to the corporate strategy External relationships with customers, suppliers,

and other stakeholders Roles and responsibilities (e g. a process owner+an optimization team) Skills to perform such roles(+training,

A practical guide to enterprise architecture. Englewood Cliffs, NJ: Prentice hall. O'neill, P, . & Sohal, A s. 1999).

Enterprise Information systems, 8 (2), 188 224. Van Looy, A. 2014. Business process maturity. A comparative study on a sample of business process maturity models (Springerbriefs in business process management.

and Daniel Beimborn Abstract Many stakeholders are involved in process operation and, consequently, also in process improvement and innovation.

For the coordination of all stakeholders, an effective governance model with clearly defined roles and tasks can support process-oriented decision-making,

J. Kettenbohrer(*)Department of Information systems and Services, University of Bamberg, An der Weberei 5, 96047 Bamberg, Germany e-mail:

BPM Driving Innovation in a Digital World, Management for Professionals, DOI 10.1007/978-3-319-14430-6 18 275 Numerous stakeholders are involved therein

and stakeholder relations (Doebeli et al.,2011) are influenced positively. By adapting and modifying Weill and Ross'(2004) definition of IT governance to BPM,

This includes planning and controlling revenues, earnings, costs, capital, and expenditure related to resources such as personnel, material, infrastructure, etc.

It is essential to establish structured and goal-directed communication and collaboration (Spanyi, 2010; Spender & Kessler, 1995) by defining communication flows which are presented in Fig. 4. FAR+uses five core communication flows,

which are explained from a bottomup perspective, starting with the operational communication flows: Fig. 2 Illustrative overview of FAR+roles Driving Process Innovation:

The Application of a Role-Based Governance Model...279 Process Coordination: To ensure the cross-unit execution of a process instance,

Fig. 3 Different setups for assignment of process manager role Fig. 4 Communication flows of FAR+280 J. Kettenbohrer et al.

For the implementation of the communication flows, a cascaded meeting structure is suggested. This structure is designed according to the different phases of a process lifecycle (Dumas et al.

but structured coordination and communication flows are essential. Table 2 presents the application of the communication flows in our exemplary process.

The specific implementation of these communication flows by a meeting structure according to the process (improvement) lifecycle is described in Fig. 5. Only Process Coordination is integrated not into the lifecycle view due to its unstructured characteristic (i e.

on-demand meetings. In our example the cycle starts by checking the current process to identify ideas for process improvement as a basis for Process Operation.

It was agreed to ask all process participants for their feedback by conducting an online survey.

including communication of process changes, training of process participants, execution of process, and process performance.

resource responsibles of employees perform core roles of the process Table 2 Overview of FAR+communication flows Process coordination On demand communication between process manager and resource responsible No structured

Fig. 5 Communication flows implemented according to process lifecycle cycle Driving Process Innovation: The Application of a Role-Based Governance Model...

Interviews with process participants which were conducted in the context of our research project indicate an improved communication and an accelerated process improvement procedure due to the governance concept.

FAR+provides regular and structured communication whereby cross-domain knowledge as well as trust and respect can be fostered (Wagner & Weitzel, 2012).

Furthermore, process improvement is connected closely to corporate strategy by the‘process strategy'and‘strategy review'communication flows, enabling top management support (Mu nstermann, Mo derer,

With its corresponding roles and communication flows, it supports process operations as well as process improvement and innovation.

and Economics pursuing his Master of science degree in the field of Information technology Engineering. His research activities mainly focus on practical solutions for integrating business process models,

Communications of the AIS, Information systems Journal, and Business Process Management Journal) and was presented on international conferences (e g.

IT governance and business/IT alignment, business process standardization, BPO and shared services in the financial industry, the business value of Service Oriented Architectures (SOA),

Economics) in information systems at A°bo Akademi University, Finland in 2005. Since 2001, she started her research and practice in mobile services.

She worked in the large projects carried out with Duodecim (the Finnish Medical Society), Pfizer Finland Ltd, Nokia Ventures, Nokia Mobile phones, etc.

She is an expert on issues of user acceptance and evaluation of mobile services. Her research interests include social/mobile services, business process management, business-IT alignment, IT Governance, e-government,

and technology-enhanced learning. 290 Curricula Vitae Peter Ha ndel Uppsala University, Sweden Peter Ha ndel received the Ph d. degree from Uppsala University,

Uppsala, Sweden, in 1993. From 1987 to 1993, he was with Uppsala University. From 1993 to 1997, he was with Ericsson AB, Kista, Sweden.

and application architect specializing in business process management and the social enterprise. During her career of more than 25 years, she founded

Germany Janina is Graduate Research Assistant at University of Bamberg, Department of Information systems and Services.

He has a background in business economics und computer science and has obtained his economic doctorate degree from the Martin-Luther-University Halle-Wittenberg in 2013.

Germany, and a Master of business administration from University of louisville, USA. Mirko is cofounder of the Process Management Alliance e. V

His research activities include business process management, information modelling, enterprise systems as well as implementation of information systems.

Curricula Vitae 295 Monika Malinova Vienna University of Economics and Business, Austria Monika Malinova is a teaching

and research associate and a doctoral candidate at the Institute for Information Business at the Vienna University of Economics and Business,

Besides process architectures, her other research interests include the adoption of business process management and enterprise architectures.

Jan Mendling Vienna University of Economics and Business, Austria Jan Mendling is a Full professor and head of the Institute for Information Business at WU Vienna.

His research areas include BPM, Conceptual Modelling and Enterprise Systems. He studied at University of Trier (Germany) and UFSIA Antwerpen (Belgium

enterprise systems management and business process management. Charles Møller is the director of the Center for Industrial Production (CIP) at Aalborg University.

In 2004, he obtained an additional BSC in Communications-Pedagogics, Stockholm University. Between 1999 and 2011, Mr Ohlsson worked with business development at companies like SAP, Aptus Consulting,

His research interests include disruptive technologies and business model innovations. Ce'sar Augusto L. Oliveira University of Pernambuco, Brazil Ce'sar Augusto L. Oliveira received the M. Sc. degree in computer engineering from the Computing systems Department, University

After studying political economics at the University of Freiburg he received a doctorate in 2003 and a professorship in information systems and business economics (Habilitation) in 2010.

His main research interests are compliance in flexible workflows, economics of controls, risk management, and IT-support for disaster response management.

Curricula Vitae 299 Bernd Schenk University of Liechtenstein, Liechtenstein Bernd Schenk is senior lecturer for Information systems at the University of Liechtenstein.

He holds a Ph d. in Information systems from the Vienna University of Economics and Business and a MSC from the University of Innsbruck, Austria.

She holds a Ph d. in business economics from the University of Liechtenstein and a Diploma in economics from the University of Hohenheim, Stuttgart, Germany,

including Information & Management, Enterprise Information systems, and Business Process Management Journal, as well as in academic books and conference proceedings. 300 Curricula Vitae Tom Thaler Saarland University, Germany Tom Thaler is researcher at the Institute for Information systems (IWI) at the German Research center

His research interests encompass business models and various aspects of business process, supply chain and operations management.

International Journal of Production Economics, Journal of Strategic Information systems, Long Range Planning and Wirtschaftsinformatik. He won several research awards

Curricula Vitae 301 Amy Van Looy Ghent University, Belgium Amy Van Looy holds a Ph d. in applied economics.

Her research is published in scientific outlets such as Total Quality Management & Business Excellence, Enterprise Information systems,

including Green BPM Towards the Sustainable Enterprise, and the International Handbook on Business Process Management.

Welch is also the bformer principal of REW Insurance Consulting Services where he provided services in strategic planning,

product management & pricing, underwriting strategy, and usage based insurance strategies to Property-Casualty insurance companies, agencies,

and mobile application uptake. 304 Curricula Vitae Index AADAPTATION, 68,76, 78,152, 167,236 239,247, 250,254, 257 Adaptive enterprise, 22 Airport, 13,67, 194,195

9 Communication flows, 279 285 Competitiveness, 4, 5, 7, 12,17, 19,27, 242 Compliance, 5, 14,23, 38,40, 107,124, 147,150, 180,247 257,300

194,206, 295 Digital opportunities, 13,129 142 Digital world, 3, 4, 12 14,59, 69,78, 81,83, 136,155 172,177 189,232, 257 Disciplinary responsibility

innovations, 13,193 212 Emerging techniques, 146 Emerging technologies, 12,13, 51 57,76, 257 Empirical evidence, 155 Enterprise software, 52,54 Enterprise system

stakeholders, 70 Internal controls, 248,249 Internet of events (Ioe), 106,107 124 Internet of things (Iot), 3, 7, 20,27, 106 Interpersonal communication, 60 JJOB-to-be done (JTBD), 40,41, 45 KKITCOM, 248,252 257 LLAYER, 24,78, 79,83

, 97 100,132, 169,178, 187,188, 197,244, 266 269,272 Lifecycle, 76,77, 81,82, 122,215 217,225, 264,267, 268,272, 281 284,303 Line of sight (LOS), 232,234 Lufthansa

See Problem-to-be solved (PTBS) Index 307 RREAL-time enterprise, 18,22, 24 Real-time technologies, 3, 7 Reference controls

262,263 Social networks, 53,54, 60,61, 136 Stakeholder, 10,59 65,67 70,99, 111,131, 150,186, 195,196, 200,201, 208,221, 260,264, 269,272, 276 Stakeholder involvement, 59,69

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